January stock markets continued the surge forward from 2017. Any effect of the new tax plan is already priced into this market. There is room for upside growth. We can compare this market to the market of the mid-60’s as well as the decade of the 90’s. We know those times did not end with a soft landing. We remain vigilant for signs suggesting when it is time to move some gains to a safe harbor. We plan to suggest moves earlier than necessary, to be cautious, but nothing soon.
How long can the party go on? We agree with the view of our risk management software: The US economy is riding into 2018 on a high. Fueled by low interest rates and low inflation, markets continue to make a historic rise. Unemployment is at its lowest levels in 17 years. International Monetary Fund stated 2017 “turned out to be the global economy’s best year since 2010” and anticipates the party will carry on through 2018 as the US and every major economy – the European Union, Japan, and China – are expected to grow. Our diversified portfolios are set to benefit with the market growth while remaining prepared to weather a volatile time.
A simultaneous blue moon (a second full moon in a calendar month) and blood moon (a lunar eclipse turning the moon a rusty red) occurred on January 30. The blood moon was not visible here but with a fresh snow cover the night was brilliant. So much happens that we barely notice. Gifts unopened.